Gigamon Shares Soar in Debut

Shares of networking-hardware company Gigamon soared in their debut Wednesday, rising as much as 39% in early trading. Don Clark reports on digits.

This transcript has been automatically generated and may not be 100% accurate.

... I ... I welcome to Digits Spencer on pay and are looking at the stock chart for good Oman which went public today and ... as you say it's the dream of all Aspergers to get ... that stock chart looking up at the heart of forty six percent ... Don Clark from Census goes here with us today ... talk about this ... a spectacular IPO Don welcome what is to come on and why is it going up so high ... that's a very good question I have never heard of gingham on until yesterday strangely enough ... the company's been around since two thousand for ... and of basically bootstrap itself almost all the time that ... it makes its hardware ... the disease for Kennametal layer of network analysis where they can ... look at all the packets coming to a company and prioritize which ones ... they want to sort of ... make sure get through a high service levels and what can be kind of put aside which is kind of a ... sudden um reflection of just a deluge of data coming into these companies and how important ... certain parts the data are versus others ... and ... yet have to say I'm a bit puzzled by this myself I was looking at the finances of the company ... made a small profit of one three million dollars last year ... and actually lost money in the first quarter this year ... and also the proceeds of the IPO ... not even going aam ... to the companies are going to ... I guess some employees of the company so ... that to me smells like a little bit of a fishy offering one during ... you know ... that ... I would hurry thing about this to the growth prospects the discovery that must be pretty big for the ... stock to be going up that much ... oh well at Tyson CEO today he said the girl in my country much like crazy and doubt ... that they didn't actually than the one in the bank they didn't have to do an IPO but they are they do get some proceed to believe and ... I think what I think what they basically are just right now is is to get more sales and more name recognition because ... you know they're they're used in most of the big banks and most of the big get ... in a Wall Street houses and things like that and of but they're not they're ... totally ... probably sold only to some very had to take the network engineer at the company Rhinos but that why they needed this thing ... my oath is also a very competitive market as you know ... this a lot of startups and is one of the company's itself ... a network of Aquaman and networking software ... to leave any sense for who they directly compete with and ... what the competitive than it might be ... but it basically there's all these different layers you know they described to me the ... that you know this or that Cisco network hardware Lehrer up above that there's sort of the management layer above that sort of a security layer companies like faeries ... and they stay there um one layer above that there are competitors in actually give me their names but to ... I think it's a sort of a ... niche of an inch and ... a remains to be seen a lot of these companies come out and they seem like an independent ... industry but then it turns out there feature of somebody else's product so ... good with the idea that you know these kind of guys could become ... bought by a one of those bigger players in one of those lower tears censored nascent a possibility for me ... and did the composite company CEOs I ... tell you if they're going to return to profitability anytime soon ... you know I think there was a total disconnect there and you know I think that to ... there are of he said there are profitable in twenty twelve that I didn't see the look of the first quarter but to ... he says they are deftly making money I'm and I think some to make me think there might've been a onetime enough on them only anomaly in the first quarter but to ... um ... yes I like one of those that say ... you know cloud startups that said it does we read revenue recognition you know they've been cash flow part busily been profitable since two thousandsix he said ... well I guess the eye animal spirits or live in won't Silicom Valley people still lived us to solicit Can resto ... thanks for filling enough ... the US on that and Dom ... will talk you soon Don ...